William Eichler 15 October 2025

Labour MPs urge Chancellor to scrap ‘outdated’ council tax system

Labour MPs urge Chancellor to scrap ‘outdated’ council tax system image
© Vitalii Vodolazskyi / Shutterstock.com.

Thirteen Labour MPs have urged Chancellor Rachel Reeves to abolish council tax, arguing that the current system is outdated and unfair.

In a letter sent to the Chancellor last month, the MPs called for the tax to be replaced with a new model that better reflects the dramatic rise in property values in London and the South East over the past 35 years.

‘If we are to succeed in our mission to transform Britain and fight back against Reform, we must be bold and embrace new ideas that put more money back into the pockets of working people,’ the MPs wrote.

‘One place we can start is by looking at ways we can abolish the outdated, deeply regressive, and increasingly indefensible council tax system.’

Council tax was introduced in the early 1990s and is still based on property valuations from 1991. Critics argue that this has led to widespread inequality, with households in lower-value regions paying a disproportionate share compared to those in wealthier areas.

The Institute for Fiscal Studies (IFS) last week also urged Reeves to use the upcoming Budget to reform the system, calling for a more ‘rational’ approach to property taxation.

Jonathan Brash, Labour MP for Hartlepool and one of the letter’s signatories, wrote on X: ‘Fixing council tax is the big, bold move that will put money back into working-class communities and show Labour is delivering.’

If you’d like to explore the deeper connections between finance and structural reform, check out 'Autumn Budget Insights: Can reorganisation and finance move in step?' on LocalGov.

SIGN UP
For your free daily news bulletin
Highways jobs

Café Assistant - Harlow Library & ACL Centre

Essex County Council
Up to £25959.0000 per annum
Café Assistant - Harlow Library & ACL CentrePermanent, Part TimeUp to £25,959 per annum (full time equivalent)Location
Recuriter: Essex County Council

Lead Officer - Housing ICT (CX Asset Management) - EFDC

Essex County Council
£500.0000 - £650.0000 per day
Lead Officer - Housing ICT (CX Asset Management) - Epping Forest District CouncilRemote Worker £500-£650 per day Umbrella, dependant on experiencePart England, Essex, Epping
Recuriter: Essex County Council

Lead Officer - Housing ICT (Cx Housing) - EFDC

Essex County Council
£500.0000 - £650.0000 per day
Lead Officer - Housing ICT (Cx Housing)- Epping Forest District Council Remote Worker £500-£650 per day Umbrella, dependant on experience Part-Time,3 England, Essex, Epping
Recuriter: Essex County Council

Part Time Vocational Trainer - Health and Social Care

Essex County Council
£38466.00 - £45254.00 per annum + Pro Rata
Part Time Vocational Trainer - Health and Social Care - South EssexPermanent, Part Time£29,468 to £34,668 Per Annum (full time equivalent) Location
Recuriter: Essex County Council

Procurement Support Officer

Essex County Council
£25959.00 - £28621.00 per annum + + 26 Days Leave & Local Gov Pension
Procurement Support OfficerPermanent, Full Time£25,959 to £28,621 Per AnnumLocation
Recuriter: Essex County Council
Linkedin Banner